Hong Kong Shares Plunge as Economic Rescue Plans From Beijing Fall Flat

TOKYO (AP) -- Hong Kong's share benchmark plunged more than 9% and other Chinese markets gave up much of their early gains Tuesday as traders dumped shares following recent rallies.

Shares elsewhere in Asia and in Europe were mostly lower, while U.S. futures were little changed. Oil prices fell.

The Hang Seng index lost 9.4% to close at 20,926.79. Technology and China-related shares led the decline.

Shares initially soared 10% in Shanghai on Tuesday but then slid back a bit as details of economic stimulus plans from officials in Beijing fell short of what investors were hoping for.

The Shanghai Composite index closed 4.6% higher, at 3,489.78. In Shenzhen, Japan's smaller market, the main index gained 8.9%.

Hong Kong shares had logged strong gains over the past week while markets in mainland China were closed for a weeklong holiday and reopened Tuesday. The advances were fueled by recent announcements of Beijing's plans for more support for the economy and for financial markets.

"China's markets rally has hit a wall, leaving investors deflated. The reopening surge from the week-long holiday barely had time to gather steam before fizzling out, and now the once-thrilled bulls are licking their wounds," Stephen Innes of SPI Asset Management said in a commentary.

Shares in food delivery company Meituan tumbled 15.5% while e-commerce giant Alibaba sank 8.8%. It's rival JD.com plunged 11.9%.

In early European trading, Germany's DAX lost 0.8% to 18,953.23 while the CAC 40 in Paris shed 1.2% to 7,485.47. In London, the FTSE 100 declined 1.3% to 8,197.15.

The future for the S&P 500 edged less than 0.1% higher while that for the Dow Jones Industrial Average was down 0.1%.

In other Asian trading, Tokyo's Nikkei 225 index lost 1% to 38,937.54. as the dollar fell to 147.79 Japanese yen from 148.18 yen. A stronger yen tends to pull share prices lower since it hurts profits of heavyweight export manufacturers.

The Kospi in Seoul declined 0.6% to 2,594.36. Australia's S&P/ASX 200 dropped 0.4% to 8,176.90.

On Monday, U.S. stocks slid after Treasury yields hit their highest levels since the summer and oil prices continued to climb.

The S&P 500 dropped 1% and the Dow fell 0.9%, coming off a record close on Friday. The Nasdaq composite sank 1.2%.

U.S. stocks had rallied to records on relief that interest rates are finally heading back down, now that the Federal Reserve has widened its focus to include keeping the economy humming instead of just fighting high inflation.

When Treasury bonds, which are seen as the safest possible investments, are paying more in interest, investors become less inclined to pay very high prices for stocks and other assets that carry bigger risks of losing money.

It's more difficult to look attractive to investors seeking income when a 10-year Treasury is paying a 4.02% yield, up from 3.97% late Friday and from 3.62% three weeks ago.

The yield on the two-year Treasury, which more closely tracks expectations for the Fed, jumped more on Monday. It rose to 3.99% from 3.92% late Friday.

Treasury yields may also be feeling upward push from the recent jump in oil prices. Crude prices have been spurting higher on worries that worsening tensions in the Middle East could ultimately lead to disruptions in the flow of oil.

Early Tuesday, Brent crude, the international standard, shed $1.68 to $79.25 per barrel. It had jumped 3.7% Monday. Benchmark U.S. crude, meanwhile, slipped $1.62 to $75.52. It also had gained 3.7% on Monday.

The euro rose to $1.0989 from $1.0977.